Creighton University economist Ernie Goss warns another government “stimulus package” in the new year may worsen the economy’s downward slide. “The last stimulus program earlier this year did not really have its impact,” Goss says. “In other words, individuals or families took that money and saved it or paid off debt.”
Goss says there’s a danger in government overreaction to the recession. “Recessions are painful and we’re trying to avoid any pain,” Goss says. Goss is also concerned about the notion — advanced in September by the outgoing Bush Administration — that some American companies are just “too big to fail.”
He sees “real problems” in drawing a line. “Who’s going to line up next to get their bailout — www.ErnieGoss.com? I’m ready for my bailout check,” Goss jokes.
According to Goss, one reason the economy’s not bouncing back is because some of the banks which were bailed out aren’t lending money. Goss made his comments earlier this month during an appearance on “The Iowa Journal” on Iowa Public Television.